BUSINESS CONCEPT
Incorporating high fashion looks for a woman’s everyday life. This is the concept behind Klasik.
Format
Klasik is a unique fashion boutique located in the 34th Street District of New York City. We feature
exclusive high fashion designer collections, trendy merchandise and accessories.
Location Justification
We selected the 34th street district because it’s a high traffic area that has other amazing retail
stores as well as restaurants. It’s in a wonderful environment and is one of the most visited areas in
New York City so it’s the perfect way for our store to attract customers.
Target Customers
Klasik caters to a young, trendy, and professional women who also maintain a healthy, casual
fashion lifestyle. These Multi-cultural women maintain a middle-high income and are between the
ages of 16 to 30. Our customers are creative and innovative and love to add diversity to their
wardrobe. These are women that desire to look their best, whether its students or young
professionals they like to have fun with their style and have a great appreciation for fashion.
Merchandise
Klasik’s specializes in merchandise that is trendy, sophisticated, unique and innovative. We
provide a range of the latest European and American fashion styles from fashion labels such as
LaRok to Dolce Vita.

Environment Description
Our merchandise is presented in a sleek, simple and sophisticated environment. Our boutique will
be predominantly white with bright lights that give the area a glow. The ambience is relaxing with
chandeliers to add a more elegant feel to the store. The store will have many different art pieces on
the walls for décor.

Promotion
Klasik offers a club card that will accumulate points for purchases and will reward our customers
by offering them gift cards and special discounts. We will have planned fashion shows and or
launch events to highlight new season styles and exciting new trends and special appearances by
some of our designers. Klasik will offer an interactive online website, where customers will be able
to shop certain items. Klasik will have a magazine that will be published every season ( Fall,
Winter, Spring and Summer). Customers with our special club cards will be able to get the
magazine mailed to them in advance before its available in the stores and online. Klasik boutique
will also place advertisements in magazines and local papers to attract more customers to our store.

MISSION STATEMENT

Our goal is to offer the best and latest fashion trends to our
customers, where our customers can shop in a well relaxed
atmosphere and develop new diversity style of fashion.
We will accomplish these goals by providing the best experience
sales associates at our store that will respond to our customers
request in an orderly fashion. Our store will be organized with a
clean flow so that our customers can shop easily. We will also place
exciting display throughout the store and window displays.

Klasik’s logo is very simple yet sophisticated. We chose a classic
approach by using the black color and cursive font to exude the high
class environment. The name of the itself means “Classic” but we spelt
it the way it’s spell in most Asian countries. We wanted to use the name
by adding a little sophistication to it, and not keeping it boring with the
classic its spelt in our everyday life.

CUSTOMER PROFILE
Store Name

Klasik

Geographicâ&#x20AC;&#x2122;s:
Overall Trading Area

Residents of New York City.
Tourist- Europe, United States, Asia, Australia,
Latin America.

Neighborhood Location

34th Street District, New York, NY

Demographics
Gender

Female

Income

Middle-Upper Class

Price Range

Contemporary, Bridge.

Body Form

Any

Size Range

XS, S, M,L

Age

16-30

Education

High School +

Ethnicity

Multicultural

Psychographics
Body Image

Disciplined (controlled and pure)
Mirroring (means of embellishment and glamour).

Fashion Knowledge

Savvy, trend setter, innovative, aware.

Taste Level

Classic, elegant, sophisticated, trendy.

Life Style

Career, casual, active wear, special occasion

Social Attitudes

Individualists, Open minded, Status seekers

Personality

Creative

VISUAL CUSTOMER PROFILE

LOCATION AND SITE EVALUATION
After reviewing the following criteria we decided to be located at:
34th Street District
435 7th Avenue
7th Avenue at 34th Street
New York, NY 10018
Personal Preference: An open-air shopping area, which is in the heart of New York
City and will attract a lot of people.
Size availability: 1000 sq ft.
Affordability and lease requirements: Rent per square foot x size = yearly rent.
Yearly rent should be 10% of yearly sales. $50 per sq. ft. for $12,500 yearly rent on
sales of $1,250,000This is only 10% of my yearly sales. I will have a flat lease.
Access to target customer: 34th Street District is a destination for all women that are
in love with their style and how they present themselves and they also fit our
customer profile.
Neighboring businesses: Retail mix of other shops and restaurants.
Exterior design and visibility: We are located within the middle of the 34th street
district.
Interior layout: Open clean, white layout accented with chandeliers and modern
seating.

Parking: A small number of parking available in the area, but there are lots of other
means of transpirations.

Challenges: Competitors have great presentation. Must develop new
ideas and hire visual merchandisers to draw in clientele.

KEY ITEMS

INSPIRATIONS

VISUAL CLASSIFICATIONS

Tops 44%

Bottoms
35%

Dresses 16%

Shoes & Accessories
16%

VENDOR LIST
Lamixx was created from a vision for clothing that is
timeless, luxurious and truly wearable. Lamixx carefully
takes the time to develop clothing with fine fabrics, high
quality, and the pure silhouettes that makes each piece
special. Inspired by classic vintage styles, and created with
natural colors.

Dolce Vita is always on the pulse of what’s going on
in the pages of the hottest magazines and on the top
must-have lists of fashion editors. With Dolce Vita
shoes, you’ll always have the most sought-after styles
in the hottest colors and silhouettes.

Wildfox Couture is an American vintage-inspired
women’s knitwear brand. Combining great style and
unsurpassed quality. Inspired by Native American
artwork and vintage rock & roll t-shirts, the young
designers gave birth to a brand that tells a story of
their generation and friendship.

Jenny Han is a casual-chic collection of modern
apparel with character for women. Distinguished as
thoughtful and meaningful clothing that is
"effortlessly elegant" and "undeniably
charming", Jenny Han styles are crafted with soft
materials and bold prints that allow a woman to
look and feel glamorous without trying too hard..

Charlotte Ronson followed the tradition by developing
her own unique style at an early age. A playful mix of
70's inspired cotton tees and coveted wedge heels that
gained the instant recognition of renowned
publications.

VENDOR CRITERIA & NEGOTIATION POINTS
As a new business we are extremely aware of the importance of developing
and maintaining good vendor relationships. We will focus on the following
areas:
DISTRIBUTION POLICY
Exclusive distribution only or exclusive and selective within the trading
area.
PRICING
We will offer great value all items sold at the store, we will have semiannual seasonal clearance sales and also offer promotional prices each
month for special items.
TARGET MARKUP
Our yearly planned target markup will be 65%.
DATING AND FREIGHT
We will negotiate for the best dating terms 8/10 e.o.m. and
F.O.B. destination for freight as the ideal
RETURN AND EXCHANGE PRIVILEGES
We will return all late deliveries and damages with agreed damage stickers.
Slow sellers will be returned on memorandum if possible.
ADDITIONAL AREAS FOR NEGOTIATION INCLUDE THE
FOLLOWING SERVICES.
Cooperative Advertising- Vendor shares cost of advertising
Editorial credits - Fashion magazines
Sales Training

FINANCIAL EVALUATION
Key Financial Indicators
The most important indicator with regard to our business success is sales
growth. In order to succeed, we must achieve early sales success and build
on that success to generate sales growth. A dominant share of our launch
effort will be to generate these early sales.
Secondly, we must maintain gross margin of at least 60%. The margin is
crucial if we are to be able to afford adequate marketing and other fixed
costs.
Finally, we must control costs. Since pricing and variable costs are very
difficult to control, we must operate in a consciously cost-controlling manner.

Break Even Analysis

Year 1

Year 2

Total Operating Expenses

320,100

370,100

Divided by Gross Margin %

58%

58%

Break Even Sales

551,900

638,100

Total Operating Expenses

320,100
260,000
580,100
58%

370,100
300,000
670,100
58%

1,000,000

1,155,344

+
=

Projected Net Income
Total

Gross Margin %
Break Even Sales + Projected Net
Income

INITIAL CASH REQUIREMENTS
PREOPENING EXPENSES AMOUNT

DESCRIPTION

Beginning Inventory

$56,000

Exterior Building/Remodeling

$7,500

The amount of inventory (at cost)
needed to open.
The amount per contractor bid,
materials, etc.

FRONT & FORWARD MERCHANDISING
Based on upcoming trends we have selected three statements
for the first three seasons of the opening period to be used
for advertising, interior displays, exterior windows and overall
presentation emphasis.

Klasik Inc

This was my Fashion Buying Final Project, in which we had to create a type of store (this one is womens apparel and accessories) and select the merchandise that we were going to be selling, the venders we were going to buy from with the amount in seasonal/yearly (thats all the math calculations you see). We also had to come up with a location of the store. ***This store location is not real, it was the project only*** Thanks:-)